ANDE has committed to investing $350 million in 2026 to fortify grid reliability and accommodate rising demand, surpassing its recent annual average investment of $300 million. Investments include a $100 million transmission line project expanding supply to the Chaco region, signaling efforts to extend electrification and support growth beyond metropolitan centers. Enhanced system reliability is reflected in improved service quality with a 45% reduction in interruptions and faster outage restorations.
Complementing infrastructure upgrades, Paraguay enacted Decree No. 2.553/24 establishing a New Energy Policy with goals through 2050. The strategy prioritizes institutional strengthening, energy efficiency, renewable energy expansion—including 2,000 MW of solar and 500 MW of small hydro by 2040—and integration with regional markets. The policy also outlines development of bioenergy, smart metering, and electric vehicle adoption aimed at reducing emissions and modernizing the sector. ANDE’s role as sole grid operator remains, with opportunities to widen renewables and efficiency programs amid historically low tariffs and near-total hydro reliance.
Challenges persist regarding high transmission and distribution losses and limited private sector participation, yet ongoing investments and a robust policy framework position Paraguay to manage sustained demand growth while supporting regional energy integration and domestic development objectives.
This article was curated and published as part of our South American energy market coverage.
